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Sttas duty drawback explained
1. a UPS Company
Duty drawback: a refund on
import duties, fees, and tax-
es you may be able to claim
when you export.
Duty drawback is a refund of duties, fees and
taxes paid on goods imported into the U.S.
that are subsequently exported from the U.S.
Similar to how you are refunded sales tax
when you return an item to a store, you can
claim a duty refund when you export an item
that was previously imported.
There are several different categories of duty
drawback, but the two most common cate-
gories are manufacturing and unused mer-
chandise.
Manufacturing duty drawback applies when
you import an item that is then manufactured
into a different item. For example, if you im-
port bicycle tires and export finished bicycles,
then you can get the duty you paid for the
bicycle tires refunded when you export the
finished bicycle.
Manufacturing duty drawback example
Unused merchandise duty drawback ap-
plies when you import something, and then
export it in the same, unused condition. If you
import bicycle tires, and then export them
again without changing them, then you can
get a refund for the duty you paid when you
export the tires.
New duty drawback rules started in 2018
Changes in legislation came into effect in
2018 that significantly broadened the oppor-
tunities for duty drawback claims. The new
legislation allows for broader substitution of
good, which means that instead of needing
to import and export nearly identical items,
you can now import and export items that are
similar and still claim a refund.
In addition, the recent legislation change
made two more significant changes: timeline
and the eligible fees. The new deadline for
duty drawback is five years from import to
filing the claim, which means you could have
years of eligible exports waiting for refunds.
Also, more taxes and fees, such as harbor
maintenance fees and merchandise pro-
cessing fees, can now be refunded for both
manufacturing and unused drawback. That
means additional dollars without additional
work.
Duty Drawback
Unused merchandise duty drawback example